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tv   Power Lunch  CNBC  January 14, 2013 1:00pm-2:00pm EST

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welcome back, let's do final trades. stephanie? >> i like nike. >> you like the roy mcilroy deal. >> johnson&johnson is going higher. >> precision cast parts. report earnings, let's buy some upside calls. >> let's look at shares of apple if we could. dipping below 500 bucks for the first time today in nearly one year over concerns of orders slipping for the iphone 5.
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certainly the stock to watch between now and close. that does it for us. have a great day. don't forget to catch fast at 5 a and follow me on twitter. >> "halftime" is over and "power lunch" and the second half of the trading day starts now. >> the fight in washington has begun. president obama issuing a warning on the next d.c. deadline, days after americans see a bigger chunk of their first check of the year going to social security taxes. something rotten may be at apple. the stock is dropping, taking with it the nasdaq and a whole lot of mutual funds. so should you get ready to bite? go into apple on the report that scott just talked about. and check out the brand new corvette. iconic car, maybe even more beautiful than it's ever been. that's one of the things on display at the detroit auto show. we will take you to motor city live.
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but first to sue with the new york stock exchange. >> ty, you saw it moment ago on cnbc. president obama finishing up his news conference in washington. topic number one, debt ceiling deadline. john harwood is at the white house. lines are drawn, john. >> sue, they were drawn very starkly by the president. he asserted that american people vendcated his approach to deficit reduction in the recently passed election. he said he was willing to negotiate over ways to cut the deficit in the future but he accused house republicans of playing a hostage game with debt limit in the debt ceiling very soon and said he will not participate. >> they will not collect a ransom in exchange for not crashing the american economy. the financial well-being of the american people is not leverage to be used. the full faith and credit of the kru
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united states of america is not a bargaining chip and they better choose quickly because time is running short. >> john boehner put o out a statement right after the news conference trying to stay out of box the president put them in. he said, the house will doity job and pass responsible legislation that droenls spending, meets our nation's obligations and keeps the government running. the question will be, can he move his caucus in a place to where he is reach an agreement with the president that raises the debt limit without violating the president's pledge. he says he will only go for a balanced approach to deficit reduction, meaning tax revenue as well as spending cuts. we're in for a major fight coming up quickly, sue and tyler. looks like we can hit the debt ceiling as early as one month from now. >> john, this is not kinder gently rhetoric, not by a long shot. but who can forget the most recent discussions off the fiscal cliff and the president ultimately backed off his
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$250,000 number and ended up in a much higher number and went along with making permanent all kind of other tax changes that seem to be part of the stew. and the reason that the deal got done by the way, was that the president basically bowed out and joe biden bowed in. should we look for mr. biden once again to play the role of the ultimate negotiator mediator here. >> yes, i think we will. see joe biden involved in that. but the real hammer the president had in those discussions was not joe biden. it was the fact, tyler, that the tax increases were scheduled to expire on december 31st. we were looking a the a very large tax increase. the president accepted less than half of the revenue goals that he had been seeking as a resolution of that problem. so what is his leverage going to be here? he's trying to say, you make into leverage the fact that the accusing house republicans of taking the economy, hurting
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medicare and social secure fit they don't raise the debt limit. but the way out for these two sides is not immediately obvious right now. >> john harwood, thank you very much. >> as you know, whenever you talk money in washington, taxes comes part of the equation. the t word has become very real and very ugly from coast to coast after millions of americans saw a much bigger chunk of their paycheck pay their 2013 social security taxes. we have three key tax stories today. all with a big impact on your bank account and the way the nation saves and spends. we start with eamon javers in washington. eamon? >> hi, sue. call this one the tax cut that no one in washington liked. the payroll tax cut, designed to be a temporary stimulus measure and republicans and democrat banded together here in washington it let that expire at the end of last year. what that means is with the first paychecks of the new year, a lot of folks are looking at
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their paycheck on the line that says fica taxes. they haven't seen amounts like that for two years taken out of checks. how big of a bite is this new tax increase to folks? let's take a look at tax payer who makes about $100,000 and walk through the gross. back in 2012 and 2013 pch you see the gross numbers on a paycheck. social security in in 2012 would have been $161.54. now this month, there are 238.46. that works out to $1999.92 over the course of a year for a person making a hundred thousand dollars a year. at $200,000 a year, the bite gets a little bit steeper. works out to about $2,425. but this is a weird one because this tax works the opposite of many other taxes in that it only taxes you up to $113,000 of income. above that, you don't have to pay the social security piece of
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the fica tax. it hits those people at the bottom on a percentage basis more than other taxes do. that's why people are having a little bit after head scratcher here, trying to figure out what the impact is, sue. >> yeah, eamon, no one is happy about it. and jane has that story live for from burbank, jane? >> reporter: hi, sue. in california, it is a double-whammy. not only are people seeing higher taxes but in california there are is a higher sales tax twb there is higher federal income tax and state as well. but this is l.a., a blue city and blue state and people are used to ponying up. >> have you gotten paid yet this month. >> reporter: yes, i have. >> did you notice your paycheck was smaller? >> i did. >> reporter: how did you feel about that? >> on one hand, we know why it is being done in the sense that we need to find a way of getting the deficit down. you but on the other hand, no,
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because a great deal of us do live paycheck to paycheck. it is mixed feelings. >>er terrible. >> if it is helping people less fortunate, then i'm all for that. >> reporter: very different what we found when we asked folks on twitter. hell yeah, it announcing a trip to the grocery store or gas station every with two weeks, definitely in theed. quote, since self-employed get a self-employed double wammy. on the other hand, to complain about a small cost is short sighted, the trend in tangible day-to-day well-being has been up. >> no smaller check but of course i work in canada and am canadian. >> earlier this month will have a balanced budget after passing
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a major tax hike on the risk or health editor. robert? >> sue, that right. it seems like a california dream come true, eat least for democratic politicians. in november of course voters pass the new top tax rate of 13.3% for the top earners, the highest in the country. a m later, presto. income tax revenues exploded surging more than $760 million more than expected in december. that sudden windfall along with other revenues led to a very rosy outlook for 2013. governor jerry brown saying he will have balanced budget after years of massive deficit. but is it real? probably not, say budget expert. they say that december money was probably a one-off tied to the fiscal cliff. the wealthy taking gains in december to avoid higher tax rates in 2013. revenues from the new california tax they say won't really kick in until this quarter or later in 2013 as brad williams a
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california budget expert told me, quote, we suspect the added revenues were related to the federal tax changes rather than the new state tax rates. now it all shows that california is more dependent than ever on the wealthy. the top 1% of earners, remember they pay up to half of the state's total income taxes but revenues from the rich are now harder than ever to predict. back to you guys. >> thank you, robert. let's go to michelle ka brumich >> you will have a lot more cartoons available on the kid section only and also the exclusive video streamers of the new seasons of dallas. as you can see, getting a big texas more with more than 2%. back to you, tyler. >> thank you, michelle. jp morgan out with more this week.
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the london whale and that loss may take a big bite out of jamie dimon's bonus. kayla is here with details. >> i'm told by my sources that the board is meeting today to discuss findings into the whale losses. that is spear headed by former exxon ceo and two other directors. the efforts started soon after early losses were exposed in may of last year. punishment of any oversight is of course compensation for ce o o jamie dimon and other top executives. more than $23 million, dimon is the most handsomely paid wall street executive. here is how you break down his pay package from last year. $1.5 million base salary which rose in 2011, a stock award worth some $17 million and cash bonus of 4.5 million. that is what expert say could be
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most susceptible here. now among the other components of dimon's compensation is lines of business. that could be scored lower to risk oversight on that whale trade. others is the strength of the balance sheet and return on equity. still, signs many penalty unclear. especially since the bank has record profit. adding anything to dimon's pay would hardly come as surprise when cnbc asked in june if he should pay a price for complacency, he said, it is in the board's hands. tyler? >> no one likes to have tlir pay cut. but he would probably man up and say, i'll take it. >> and j.p. morgan's performance seems to be good enough quarter over quarter that he could see it bounce back. >> thank you very much. apple falling below $500 a share for the first time in a year. buy it or sell it one top analyst take after the break. and what the heck happened with this apple store? we're back in two minutes.
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oi
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oi. lincoln town car plowed into this apple store in chicago in the lincoln park neighborhood, appropriately enough. one person suffered minor injuries. of course it was not any worse than that. apple shareholders may feel like they've been a little bit after hit and run today. shares taking quite a dip as you see. down $18.64. back above 500. but they were below 500 early
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today for the first time since february of 2011. the tech giant reportedly cut orders for iphone parts raising fears about demand. john fortt is here and it was first in the journal, john? >> i do know this from covering app ael while. unless you have the 30,000 foot view on the supply chain, it is hard it interpret what is going on from one detail. apple could be cutting orders because the ipod touch uses the same display and demand for the touch cools off significantly after christmas. another issue could be yield. we know apple is having a lot of trouble building iphone 5s at the end of last year and the company seemed to work out production glitches soon after the last earnings call. there are lot of reasons apple may need fewer components than
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feared. mark at j.p. morgan makes the same note today. look at the lifetime iphone sales. well above 40 million units over the holidays. now they are afraid of weak demand after christmas. one thing to consider, apple had huge sales in the march quarter two years ago because of the verizon iphone launch. many of the buyers are becoming eligible to upgrade. now gross margin, guidance this quarter. if this is high then that will suggest that apple ceo tim cook sees smooth sailing for the iphone 5 going forward. if not, that could validate report. guys, back to you pz. >> john fortt, thank you so much. brian blair on the cnbc newsline. do you get into the stock or not? >> absolutely. well get the report card for december quarter. and i think it is an
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opportunity. as john pointed out, you know, apple often cuts away from one supplier and gives to another. there are a lot of reasons for trimming, but i do not think this is a question of demand. >> i know you don't do price targets but do you have a gauge on how much further the stock will move? >> i like to look at the stock in hundred dollar increments. i know others have $900 to $1,000. i look at stock at hundred dollar increments and believe this is a $600 stock this year without any question. it is growing at 20%. this stock is growing at ten times this year's earnings. about nine times next year's earnings. this is great stock with great market share growth still to come. i think we can see this thing in the mid 600s. >> down 3.5% today. good to talk with you. >> when apple moves, it usually takes a host of other companies with it. good case is apple suppliers. let's check in and see how they are doing. apple is on the down side today.
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as you know about 3.5%. some suppliers getting hit. the biggest loser down almost 9% on the traysing session, cirrus logic. ty? >> koun grading neutral from overweight. starting the price slash at 247 from 215. given the upside potential and muted revenue growth. over three months, shares of ibm have slid more than 7%. you agree with this call or snn. >> i do agree with this call. i speculate that what they are really getting at is that people are gravitating towards oracle and sap for their erp. which is enterprise resource planning. a fancy name for all inclusive offer they have. then they will also buy their software product. so i agree with that. at the end of the day, this is old world pc versus new world discussion. as ibm and microsoft are caught
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in the middle of that where people don't know what to make of it. however if ibm trades below 188, i do think it sells there. >> the company believes that cisco emerged strong from its restructuring effort and says, quote, cisco is our best large cap idea for 2013 over the past two months, cisco shares are up more than, you see it, 17% at 20.83. you like cisco? >> i would have loved it. since then it is up 25%. as it turns out, the software difine networking aren't ready to take away cisco right now. would i buy it here? absolutely not. if it settles above 21.30, 21.50, i might be wrong and might be interested then. but right now, it is too late
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for the call. >> upgrading he hewlett-packard. >> it can't get much worse. suffering the past year but up more than 3% on the day. a nice run from the lows about $14 back mid november. jim, what do you say here? >> there is a reason it will sound like a little bit this on an uptick. the market gave this up for completely irrelevant and as good as dead. i did get hurt on that. now i'm long on making that money back. i like it and i like the simplicity of that call. plus, a couple weeks ago when it was trading opt lows, we are talking about bad news being priced in. plus, talk aftof a takeover tar. >> great to see you again. >> thanks, ty. >> sue? >> sure is good to see jim.
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time for the rundown. michelle cabrera carusso is here. number one topic. a travel ban on travel for citizens is lifted but will the new freedom cause more cubans to flee the island for good? michelle, your views here? >> they absolutely are. there are lines right now to get out of there. what's unclear are people such as yani sanchez, very famous
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blogger and tweeter, will she be allowed out? she tweeted about it all weekend. she applied. she thinks she can get on a plane in early february. >> is it as simple as we portray it? you just go with your passport and you are let out of the country? >> hard it here. they don't let a lot of journalists in but that's what it looks like opinion on the border with mexico, we are waiting to see if cubans from mexico walk across the border. if you are cuban, you can just enter the united states extremely easily compared to other immigrant. >> stephan? >> i think it is 40 plus years of cold war between cuba and the u.s. for travel restrictions. i think that is fantastic for cuban families an an opportunity for the u.s. to try to attract more of the brightest people from cuba. >> let's move on to something closer to our technological home. that is the smart phone battle and who wins and loses. apple or smart -- or samsung.
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but here in this, a third player, which is google. which seemingly can't lose either way since they make apps for both the iphone and of course the android. or l license the android operating syst system. >> google is in a great position. no doubt they can get huge market share, whether for apps or the operating system. however 75% of profit good to apple. they are the ones making the money. it is about where the developers go. so i think it is early to say that google is winning no matter what. but i think they are not losing, certainly. >> they are making a few pennies on all of those smart phones one way or the other. >> exactly. it is oversimplified to say, this is like the ketchup wars.
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like if mcdonalds continues to get bigger, then so did ketchup. >> he has a great voice. >> he does. >> and handsome. >> maybe joyvoice over for tv. >> biggest customers, men in their mid 50s for the corvette. are guys who drive corvettes sexy? >> they are definitely having a mid life crisis. this is a mid life crisis mobile. >> you are a few years away, stephen. >> but i might go for a tesla. >> it is ear american. and cheaper, around $40,000. versus porche, $90,000. >> we will have more from the detroit auto show later today. folks, thank you very much. >> a pleasure. >> good to see you.
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>> fm radio. >> and tv. >> gold prices getting ready to close. and jackie is tracking the action. >> good afternoon, tyler. there is a lack of conviction in this market right now. traders are watching the 2013 range at this point, 16.26 and 16.96. they say if we go to the down side and break 1595 we could go as low as 1525. iffer with around 1703, we could rally to 1800. there are a lot of unknowns and traders are sitting on the sidelines playing wait and see. look at platinum prices as well. three-month highs today. concerns over supply issues in south america but more interesting is that platinum prices are on the brink of hitting parody with gold. if the economy were worse, we would see more geeld buying. we could see a cyclical uptake. so important to watch the metal
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prices at this point. ya back to you, sue. >> thank you, jackie. we will take you live to motor city to speak with toyota usa. plus, why is rory mcilroy one happy golfer today? it has a lot to do with the color green. but nothing to do with the green jacket, mind you. back in a moment. what are you doing? nothing. are you stealing our daughter's school supplies
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steady as she goes. >> yeah. short term. we really want to hear from mr. bernanke this afternoon about whether the time line of whether the bond buying program will end. i want to show you the major secretariors and the important thing is, tech is dragging things down. a rather amusing note there, cisco is strong but most of the rest of the tech sector is on the weak side. apple was below $500 at the open here. take a look at the sector here to date. i want it see how strange things are. from year to date, the sector thought, believe it or not, is healthier. take a look at healthcare. this is, sue, people try to
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hedge themselves out. financials and materials and consumer discussionnary, pfizer is the second biggest gainer in the dow. so people are backing into the more conservative names as well. put up the s&p and i want it point out we are up 3%. considering people aren't sure what to do right now, these are pretty good gains. side ways today, i'm fine with that. >> thank you, bob. to the bond market, well see whether rick santelli is fine with what is going on in chicago there. hi, ricky. >> hi. the bond market is the only sane sector in my opinion as you look at an interday today, taking a round about lower rate process to get there and if you open the chart up, we are going long here and going for the fair way here, if you open it up to ten years, once again you can clearly see the trend is to lower rates. but all stimulus is fundable. look the a the japanese for the last ten years on their jgb.
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it certainly looks like a similar trend. trends are easy to pick out. look at ten-year of the dollar yen. now this trend is isn't changing and benefit of the dollar and it continues to be something you should watch. both the jgb rates and yen against currencies because that's the runner we have to watch in this race it lower your currency. back to you. >> thank you very much, rick santelli with the latest in the bond market. intel and ebay kick off terk earnings this week. we get strong indications of retailers and pc makers perform during the holiday season. john fortt, one of the hardest working guys in tv is back now. he has a preview of those numberes. hi, john. >> hi. usually they are back in the main earnings pack. ebay is out first on wednesday. wall street looking for 69 cents. revenue just under $4 billion. marketplace wondering if e-commerce is as healthy and on
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paypal, total payment volume a year ago is up 5x over the year before. another huge jump. not as big percentage wise. then intel on thursday. wall street wants eps of 45 sent on revenue of 6 billion down from a year ago on top and bottom lines. things to watch, with the windows 8 launch, how will it fair in gartner expecting a drop. we will gets hints about microsoft, hp and dell, among others. guys, back to you. >> thank you. talking about where the smart money in technology is heading. once again, joined by an internet pioneer, angel and piener an angel and film financer. how about that? >> i juggle -- >> you have a lot of hats. let's talk about an announcement apparently facebook coming out with something tomorrow. >> right. >> do we have any intelligence on what it could be? do you have any hunches? >> most people are speculating something about a fen.
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but that's the case for a long time. i think facebook is in a unique position with microsoft and their ownership with skype. facebook wins by being on all operating systems. but if they can take skype and leverage microsoft experience, there is the unique ability to bypass the tell cox pecom provi. that would be a face changer. are they doing that? i don't know. but that would be a smart direction. >> let's talk more broadly about where money is heading in technology. is it into devices or gadgets or some place else? >> i think the most interesting area to look at is where are the friction and pain points around us? i think we have a lot of talk about fiscal cliff and countries with economic issuees. we hear about people having trouble borrowing money for houses. the movement of capitol and the improvements and efficiency of
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capitol flow are the next big wave. i think you need to have a long term vision and start looking at companies like lending clubs, second market, angel list, slated. all of these companies are reinvengt the capitol. >> these are payments, money processing, fund flows, what? >> less about processing and much more about helping aggregate people around good ideas and helping money get into the good ideas. anything to help circumvent money into banks and get money from the people that have it to projects that need them. if you can make that han in a more efficient way, that is a big ripple effect that could change the economy for the next ten years or more. >> thank you very much. appreciate it. we'll have you back. >> thank you. >> sue? >> thank you, ty. recapping today's headlines. trans ocean moving higher. off-shore rig contractor exposing carl icon acquired 1.5% stake in the company. and rim is surging over optimism
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over the launch of blackberry 10 due out later this month. stock is up 40% since christmas. ups on the rise. that happened after european regulators said they would veto that deal. quick break, then the flu fears are spreading. boston and new york declaring an emergency. with so much sickness, what is the economic impact. we will talk about that. plus, phil lebeau is live at the auto show. you lucky guy. what do you have coming up? >> reporter: wreb when the prius was a niche vehicle? they sold 238,000 last year. and they believe that is just the beginning. we will talk with the head of toyota north america when "power lunch" returns. ♪
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a short time ago, apple moving below the $500 a share mark. do you see it as a good investment? 14% say no, i'm selling it. 31% say yes, i'm seeing it as a buying opportunity. 55% say, i'm staying away from it. let's see what is coming up on "street signs." i'm sure they will follow apple as well. >> absolutely. well also follow politics. what are the real headline chances the u.s. might default and what would be the ultimate consequences of that. and as you say, what is going on with apple? are these concerns justified? we will try to get to the bottom of it. and we know you love cars. we love cars, so why don't you? we will good to the auto show,
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phil is there and we will have a great interview. lots of good things coming up at the top of the hour. sue, back to you on the street. >> watch maker swatch is buying harry winston's high-end dimensions. synonymous with high-end jewelry, that you probably saw last night on golden globes. famous with stars such as marilyn monroe, elizabeth taylor. live people wear it too. swatch ceo harry winston says they have the chance to generate more than a billion in sales and 2 million in net profit. the deal does not include winston's mining arm which will be renamed dominion diamond corporation. sue? >> all right, ty. from a girl's best friend to a guy's best friend. the american international auto show is under way and phil
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lebeau has been checking in with the auto makers all day. >> reporter: hi, sue. far different than the last couple of years. i haven't seen this enthusiasm2. the car of the year is the cadillac ats. it may surprise you to learn that cad lick ats, the first time cadillac has been awarded the car of the year. truck of the year goes to dodge ram 1500. so you've got two american brands winning car and truck of the year. we are here at toyota stand. i'm joined by jim lentz, head of toyota north america. we were talking about about the buzz that's here. with when is the last time you saw this enthusiasm for the auto industry? >> i think you have to look back at 2006, 2007. a huge difference within a lot of smiling faces and a lot of
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money spent on displays an concept cars. a huge improvement. >> for you guys, last year representing a bounce back. people said, we knew they would come back. you had sales by 22, 23% for toyota company here in north america. how do you grow from that this year. clearly, 22, 23% is not us sust. >> no. but i don't think the industry will have that kind of bounce back either. you know, we have 40% of our volume come from all of our product last year. this year we have nine new models to launch as well. between new last year and new this year, that o two thirds of our volume. that a great opportunity for consumers. >> you gave your forecast at 14.7 million, the range of sales for the industry this year. a lot of people say 15.5 million. you are clearly more cautious than the rest of the industry. >> i think for two reasons.
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the market was running at 14.3 rate. we were forecasting about half a million increase. now the market finishes theier very hot. 15 million plus. so the market ends up in about 14.5, half million, so about 15 million rate. other thing we have to be cautious about, we're optimistic but this first quarter will tell us what direction overall economy is going and as a result, what direction the industry will head. >> profit margins will start to feel some pinch here because the people have more choices right now when they go out to show rooms. >> that's good. new choices and new models puts the customer in a much better condition than other vehicles. we think the market will be quite good and customers will be excited. >> prius, 238,000 sold. can you make me a quarter million line next year? >> for you, we will make it a quarter million. >> guys, we were talking about this. this is the atmosphere you see here at the show. much different than past years.
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back to you. >> thank you very much. no question about it, the flu is making people sec all over the u.s. a rough season. but what does it mean for business? we'll ask former deputy secretary of health and human services. when we come back. keep my eye o. but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.
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meryl streep is not here tonight. she has the flu. and i hear she's amazing in it. >> so amazing. >> a funny line, certainly. but not a laughing matter. this flu season striking early. but is it really an epidemic? and what is its impact on the economy and productivity. joining me now is hudson institute senior fellow and former health and human services. nice to have you back. do we have a gauge as to how much this flu will cost the busy con my in businesses? >> unfortunately costing businesses about $10.4 billion. that is real cash it will cost businesses. on the other hand, while businesses need to get work
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done, they need to be careful not to force people to come to work, spread it, and make it worse. >> a lot of people want it hang on to their jobs. the economy is recovering but we are not back to the best employment yet. a lot of employees feel they have to come in no matter what. >> the truth is, you learned all the things you need to learn in kindergarten. wash your hands well, cough into your sleeve. if you're sick, don't go to sleeve or work. it does put people into a bind and we know it is a tough situation. >> this flu seemed to come earlier than in the past. is that the case? >> we're not sure it is that much worse than other flu seasons. i don't think worse than 2009, for example. but it is moving fast, especially on the east coast. >> is this the peak? that's the talk, that perhaps we have reached the peak. >> if we have, that would be a
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kb thing. even though it's been going fast, it could slow down faster. so it may not be a terrible flu season. we will just have to wait and see on the peak. >> you're not sure it is as bad as years past. but even so, the flu is very serious. it kills upward of 30,000 people per year. do you think it'll be about an average year? it feels like a very severe virus this time. >> it is about 36,000 people a year. that is obviously a terrible tragedy. it'll clearly be worse than last year which is a relatively mild year. it is just not clear if this is really one of the kind of the all-time problematic years. >> if you're an employer and you are able to have people work off site, i would assume that that would be one of the key things, one of the key metrics they could put in place to try to limit damage to their business. >> that's a great point. telecommuting makes it a lot easier to limit the spread of the flu. and employers can tell workers
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they can stay home. but obviously that doesn't work in any business. if you're in a line manufacturing plant, you can't have people doing that. it is tough for people that don't have a telecommuting option. if you have that option, you should exercise it. >> is it too late to get your flu shot if you haven't done it yet? >> it is not to too late. it takes two weeks to be effective so the flu might still be raging when you get it. but they make the amount for next year based on how many people get it this year. >> good point. thanks, doctor. good to see you again. >> thanks for having me. >> drugstores like cvs and wallgreen's are seeing a gain over a one-week period of time. shares of cvs also hitting a high in today's trading session, up 3 1/3 percent.
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ty, i know you got your flu shot, i got mine too. >> yeah, i got mine last week. i was interested to hear the doctor say, they don't take effect for two weeks. i guess that what it takes for the inoculation to work. >> well, you've got one more week to go. stay healthy. >> ror roy mcilroy, one unhappy golfer. >> newest face of nike golf. we will show you the details on the deal. but also his new ad with tiger woods. coming up next on "power lunch." d focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing. you know it can be hard to lbreathe, and how that feels.e, make a difference. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours.
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he is the number one ranked player on the greens and now the number one player off the greens. rory mcilroy -- and he is from ier la ireland too. signing a deal with nike for $200 million. nike now represent golf two biggest stores. >> you know what is fascinating about this? mcilroy represent a new generation. it is not like tiger woods is old, right? but nike is hedging his bets if he doesn't make it all the way back to number one. he signed with rory who won't be
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24 until may. player from two continent, he and tiger are the faces of nike golf. >> that all you got? >> oh, it's gonna be like that, huh? >> go, go. >> just trying to keep up with the old guy you know. >> yeah, is that your real hair? >> you'll learn. >> second spot. even better, very entertaining, by the way, he is abu dhabi right now for the announcement. he add bunch of different sponsors. why nike? >> is young. athletic. a brand that i've always felt very close with and associated with. and the best athlete in the world, i always thought, were nike athletes. >> he is not getting paid on par with some of those athletes. he smaking as much money off the course as any athlete. not just golfers.
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>> i always had these dreams and aspirations. but feels like i got here quicker than most and quicker than i thought i would. and now that i'm here, i just want to, you know, keep going and keep trying to improve, if i can. >> this is a major double down for nike. and mcilroy seems, like a great foil, for tiger woods. and almost a hedge on there. remember the nike golf brand, really began with tiger woods. >> no, mid '90 was it. less than 20 years old. they say, that's when they committed to golf. this is just an extension of it. and these are great kplimtsd. rory might change but . >> you are taking a risk that this guy doesn't do what tig

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